Injection of Additional COE Quota with Reduced Usage & ERP 2.0 Transition

News Releases 29 Oct 2024 ERP On-Board Unit (OBU)

ERP 2.0 OBU Installation Bookings Streamlined

1               Over the last few decades, the Government has managed road congestion through vehicle ownership and usage management policies. The Vehicle Quota System (VQS) and Vehicle Population Growth Rate (VGR) regulate vehicle ownership, while the Electronic Road Pricing (ERP) manages usage. Together with significant investments in our public transport network, these measures contribute towards our ‘car-lite’ vision, with walking, cycling and riding public transport as the predominant travel modes.

2               Except for Category C vehicles, the VGR has been set at 0% since 2018. The VGR is reviewed every three years, with the last review in 2021.

Maintain Existing VGR at 0% Per Annum

3               Our long-term vision remains centred on ‘car-lite’. The VGR for Categories A, B and D will be kept at 0% per annum, while the VGR for Category C will remain at 0.25% per annum from 1 February 2025 until 31 January 2028.

Evolving Travel Patterns and Enhanced ERP 2.0 Usage Management Tools

4               Travel patterns have evolved, driven in part by an increase in flexible work arrangements since the COVID-19 pandemic. From 2019 to 2023, total vehicle mileage decreased by around 6%. On the other hand, public transport accessibility has continued to improve, as the rail network expanded by 18% from 228 km in 2019 to around 270 km today with the opening of the Thomson-East Coast Line Stages 1-4. There will also be further enhancements to the MRT network over the next few years, including an expansion of the North East Line, Thomson-East Coast Line, Downtown Line, and Circle Line, as well as the opening of the new Jurong Region Line.   

5               Concurrently, our ability to manage congestion is being enhanced through ERP2.0, which uses the Global Navigation Satellite System (GNSS) technology. ERP 2.0 will provide more comprehensive aggregated traffic information and will be able to operate without physical gantries. We will be able to introduce new “virtual gantries”, which allows for more flexible and responsive congestion management. ERP 2.0 also provides a possible option of introducing distance-based charging in the future, which will be an additional tool to regulate vehicle usage and manage traffic congestion more responsively. 

Injection of Additional Quota 

6               Given the recent vehicle usage trends and improved capabilities of ERP2.0, LTA will progressively inject up to about 20,000 additional COEs across the vehicle categories from February 2025, over the next few years. This is similar to the approach taken when the Government injected an additional 10,500 COEs on top of the allowable VGR between 1997 and 2003, following the introduction of the ERP system.

7               LTA will continue to closely monitor traffic conditions and adjust ERP charges as needed. LTA will also consider further calibrations to the vehicle population in the future, as further data and tools made available by ERP2.0 come onstream, including the possible option of introducing distance-based charging.

Streamline ERP 2.0 OBU Installation Bookings

8               About 150,000 new and existing vehicles have been fitted with the on-board unit (OBU), since November 2023.

9               The authorised installers have increased their installation capacity and refined processes to handle more vehicles. Additionally, LTA has streamlined the booking process to allow for a more efficient OBU installation experience for vehicle owners.  

Greater Scheduling Flexibility

10            About 90,000 existing vehicle owners have proactively contacted workshops to install the OBU, without waiting for official notifications. This is similar to the practice for vehicle servicing and repairs, and offers the convenience of combining OBU installation with other services, such as vehicle servicing, to further reduce downtime for motorists.

11            To further facilitate this, LTA has streamlined the booking process for existing vehicle owners. They can book OBU installation appointments directly with their preferred authorised workshops. They need not go through LTA’s booking portal for appointments or wait for LTA’s official notification.

12            The original booking portal (https://go.gov.sg/book-obu) has been redesigned as an information page to help vehicle owners locate suitable workshops for their vehicle make. They can enter their vehicle details to view a list of suitable authorised workshops and their contact information.

13            LTA will also progressively send official notifications to all remaining Singapore-registered vehicles[1] to remind them to install the OBU within the installation window.

14            Refer to Annexes A and B for more details on booking and installation. For additional assistance, motorists can contact LTA’s dedicated ERP 2.0 Call Assist Service at 6377 2255.


[1] Exceptions include (a) vehicles not allowed to travel on mainland public roads such as tractors, locomotives, construction equipment; (b) vehicles on Restricted Use Scheme such as airport vehicles, Pulau Ubin vehicles, and laid-up vehicles or those under the Keeping Scheme; (c) Non-mechanically propelled vehicles such as trailers; and (d) vehicles due for mandatory deregistration during the course of the installation exercise, such as those on a 5-year COE and those with statutory lifespan.

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